Assa Abloy Ab Class B · OMXSTO:ASSA_B

Assa Abloy Ab Class B — Q4 2024 Earnings Presentation

32 slides from Assa Abloy Ab Class B's earnings presentation, Feb 5, 2025

  1. Slide 1: ASSA ABLOY Q4 interim report 2024

    Download our IR app ASSA ABLOY Q4 interim report 2024

  2. Slide 2: Margin target reached for year 2024

    Margin target reached for year 2024  Stable organic sales – Strong sales growth in Global Technologies – Good sales growth in Americas – Stable sales growth in EMEIA – Sales decline in Entrance Systems and significant sales decline in APAC  Strong operating margin and record operating income  Exc

  3. Slide 3: Q4 2024 figures in summary

    Q4 2024 figures in summary Sales EBIT* +7% +14%  Sales MSEK 39,575 +7% – Stable organic sales 40 000 39 575 7 000 – +6% acquired and divested 38 000 36 970 – +1% currency 36 000 6 500 6 529 34 000  EBITA-margin* 17.4% (16.2%) 32 000 6 000 30 000  EBIT-margin* 16.5% (15.5%) 5 722 28 000 5 500 26 0

  4. Slide 4: Sales by region Oct-Dec 2024

    Sales by region ASSA ABLOY 100 6 0 Emerging markets 14 4 -1 Oct-Dec 2024 33 5 -2 52 7 1 7 -2 -6 1 18 2 3 10 8 4 2 -6 Change in local currencies Organic change Share of sales, % QTD 2024 vs. QTD 2023, % QTD 2024 vs. QTD 2023, % Emerging markets follow IMF’s definition as per 2018-12-31 4

  5. Slide 5: Q4 2024 Market highlights

    Q4 2024 Market highlights Project wins and achievements  Upgrade of 100,000 mechanical cylinders to eCLIQ for German high voltage grid operator  Loading docks and levelers to distribution centers in Mexico and Belgium  Complete locking systems and RFID upgrades to large cruise ships  Fraud preve

  6. Slide 6: FX adjusted sales growth

    FX adjusted sales growth Sales R12M +48% vs 2019 % MSEK 30 150 000 25 140 000 20 130 000 15 120 000 10 110 000 5 100 000 0 -5 90 000 -10 80 000 -15 70 000 -20 60 000 2019 2020 2021 2022 2023 2024 Organic growth, % Acquired growth, % Sales in fixed currencies R12M, MSEK 6

  7. Slide 7: Operating margin

    Operating margin 17.1% EBITA-margin run rate % Run rate: EBIT-margin 16.2% (15.8%) 19 18 17 Long term target range (average) 16 15 14 13 12 11 10 2019 2020 2021 2022 2023 2024 Quarter EBIT Rolling 12-months EBITA Rolling 12-months Excluding items affecting comparability, restructuring items and impa

  8. Slide 8: Operating profit

    Operating profit MSEK Run rate EBIT up 63% vs 2019 MSEK 7 000 25 000 22 500 6 000 20 000 5 000 17 500 15 000 4 000 12 500 3 000 10 000 2 000 7 500 5 000 1 000 2 500 0 0 2019 2020 2021 2022 2023 2024 Quarter Rolling 12-months Excluding items affecting comparability, restructuring items and impairment

  9. Slide 9: Acquisitions

    Acquisitions  Active pipeline – 8 acquisitions completed in Q4 – 26 acquisitions completed in 2024  Representing annualized sales of close to SEK 8 bn  Divestment of Citizen ID – Most of Citizen ID divested at the end of January 2025 – Divested annualized sales of MSEK 1,400 9

  10. Slide 10: Lawrence Doors

    Lawrence Doors  US manufacturer of coiling steel doors, grilles and counter shutters  Adds complementary products to our core business  Sales of MSEK 310 in 2024  Accretive to EPS from the start 10

  11. Slide 11: Premier Steel Doors and Frames

    Premier Steel Doors and Frames  US manufacturer of hollow metal doors and frames and metal building door systems  Complements current product portfolio and enhances expertise in solutions for metal buildings  Sales of MSEK 380 in 2024  Accretive to EPS from the start 11

  12. Slide 12: Opening Solutions EMEIA

    Opening Solutions 16% EMEIA of Group sales  Stable organic sales – Good sales growth in the Middle East/India/Africa and in 6 500 21% Central Europe 6 000 – Stable sales growth in the Nordics 19% 5 500 – Sales decline in South Europe and the UK/Ireland 17% 5 000 4 500 15%  Operating margin* 14.8%

  13. Slide 13: Opening Solutions Americas

    Opening Solutions 28% of Americas Group sales  Organic sales 2% – Strong sales growth in Latin America and North 12 000 23% America Non-Residential segment – Sales decline in North America Residential segment 11 000 22% 10 000 21% 9 000  Operating margin* 17.7% (17.6%) 8 000 20% – Good operating l

  14. Slide 14: Opening Solutions Asia Pacific

    Opening Solutions 5% Asia Pacific of Group sales  Organic sales -11% – Strong sales growth in South Korea 3 000 15% – Sales decline in Pacific – Significant sales decline in China and South-East Asia 10% 2 500  Operating margin* 5.4% (4.3%) 5% – Very strong operating leverage of +140 bps due to 2

  15. Slide 15: Global Technologies

    Global Technologies 16% of Group sales  Organic sales +5% – Very strong sales growth in Physical Access Control 6 500 24% – Sales decline in the other HID business areas 6 000 22% – Very strong sales growth in Global Solutions 5 500 20%  Operating margin 19.3% (15.5%) 5 000 18% – Very strong opera

  16. Slide 16: Entrance Systems

    Entrance Systems 35% of Group sales  Organic sales -2% – Strong sales growth in Pedestrian 14 000 18% – Stable sales in Perimeter Security 13 000 – Sales decline in Residential and Industrial 17% 12 000 16% – Good sales growth in service 11 000 10 000 15%  Operating margin 17.5% (17.4%) 9 000 14%

  17. Slide 17: Financial summary

    FX & acquisition ‘run-rate’ effects in Q1 2025 Financial summary (31 Dec 2024): SALES FX: 4% M&A: 4% October-December* January-December* SEK M 2023 2024 Change 2023 2024 Change Sales 36,970 39,575 7% 140,716 150,162 7% - Organic growth 133 -112 0% 3,393 -1,132 -1% - Acquired net growth 3,572 2,215 6

  18. Slide 18: Bridge analysis – Q4 2024

    Bridge analysis – Q4 2024 MSEK Q4 2023 Organic Currency Acq/div Q4 2024 Growth 12% 0% 1% 6% 7% Sales 36,970 -112 502 2,215 39,575 Operating income* 5,722 448 28 331 6,529 Operating margin, %* 15.5% -401% 5.6% 14.9% 16.5% Dilution/accretion 1.2 pts -0.1 pts -0.1 pts *Excluding items affecting compara

  19. Slide 19: Cost breakdown as % of sales – Q4 2024

    Cost breakdown as % of sales – Q4 2024 QTD 2024 % QTD 2023 excl. acq/div Δ QTD 2024 Direct material -35.5% -33.2% +2.3 pts -33.4% Conversion cost -23.9% -24.8% -0.9 pts -24.7% Gross margin 40.6% 42.0% +1.4 pts 41.9% S, G & A -25.1% -25.4% -0.3 pts -25.4% EBIT* 15.5% 16.6% +1.1 pts 16.5% *Excluding i

  20. Slide 20: Operating cash flow, MSEK

    Operating cash flow, MSEK Quarter 12 months cash flow / EBT* = 110% 12 months 9 000 26 000 8 000 23 500 21 000 7 000 18 500 6 000 16 000 5 000 13 500 4 000 11 000 8 500 3 000 6 000 2 000 3 500 1 000 1 000 0 -1 500 2019 2020 2021 2022 2023 2024 Quarter, MSEK Cash rolling 12 months, MSEK EBT* rolling

  21. Slide 21: Gearing % and net debt, MSEK

    Gearing % and net debt, MSEK Net debt/EBITDA* 2.3 (2.3) Net debt Net debt/Equity 66% (70%) Gearing % 80 000 80 70 000 70 60 000 60 50 000 50 40 000 40 30 000 30 20 000 20 10 000 10 0 0 2019 2020 2021 2022 2023 2024 Net debt, MSEK Gearing, % *Excluding items affecting comparability. 21

  22. Slide 22: Earnings per share, SEK

    Earnings per share, SEK Quarter 12 months 4,00 16 3,50 14 3,00 12 2,50 10 2,00 8 1,50 6 1,00 4 0,50 2 2019 2020 2021 2022 2023 2024 Quarter, SEK Rolling 12 months, SEK Excluding items affecting comparability 22

  23. Slide 23: Conclusions

    Conclusions  Strong sales growth of 7%  Strong operating margin and record operating income  Record operating cash flow  Uncertain economic climate  The Board proposes a dividend of SEK 5.90 (5.40) per share, split between two equal tranches  Sustainability seminar February 6, 2025  Capital M

  24. Slide 24: Q&A

    Q&A

  25. Slide 25: Appendix

    Appendix

  26. Slide 26: Cost breakdown as % of sales

    Cost breakdown as % of sales QTD 2024 YTD 2024 excl. excl. % QTD 2023 acquisitions Δ QTD 2024 YTD 2023 acquisitions Δ YTD 2024 Direct material -35.5% -33.2% +2.3 pts -33.4% -35.5% -33.0% +2.5 pts -33.7% Conversion cost -23.9% -24.8% -0.9 pts -24.7% -23.4% -24.7% -1.3 pts -24.5% Gross margin 40.6% 42

  27. Slide 27: Opening Solutions EMEIA's bridge

    Opening Solutions EMEIA’s bridge MSEK Q4 2023 Organic Currency Acq/Div Q4 2024 Growth 2% 0% 1% 1% 2% Sales 6,339 12 82 48 6,481 Operating income* 915 56 -17 7 962 Operating margin, %* 14.4% 450% -20.1% 14.4% 14.8% Dilution/accretion 0.8pts -0.4pts 0.0pts 12 months figures Sales 24,831 25,098 EBIT* 3

  28. Slide 28: Opening Solutions Americas' bridge

    Opening Solutions Americas’ bridge MSEK Q4 2023 Organic Currency Acq/Div Q4 2024 Growth 41% 2% 1% 2% 5% Sales 10,508 209 114 202 11,033 Operating income* 1,854 39 -22 79 1,950 Operating margin, %* 17.6% 18.6% -19.5% 39.4% 17.7% Dilution/accretion 0.0pts -0.3pts 0.4pts 12 months figures Sales 38,009

  29. Slide 29: Opening Solutions Asia Pacific's bridge

    Opening Solutions Asia Pacific’s bridge MSEK Q4 2023 Organic Currency Acq/Div Q4 2024 Growth -7% -11% 1% 0% -10% Sales 2,468 -276 27 -2 2,217 Operating income* 107 19 -7 0 119 Operating margin, %* 4.3% -6.9% -25.0% 10.3% 5.4% Dilution/accretion 1.4pts -0.3pts 0.0pts 12 months figures Sales 10,284 9,

  30. Slide 30: Global Technologies' bridge

    Global Technologies’ bridge MSEK Q4 2023 Organic Currency Acq/Div Q4 2024 Growth 3% 5% 2% 3% 10% Sales 5,885 294 119 195 6,493 Operating income* 910 303 27 13 1,253 Operating margin, %* 15.5% 103.0% 22.6% 6.7% 19.3% Dilution/accretion 4.0pts 0.2pts -0.4pts 12 months figures Sales 23,099 24,179 EBIT*

  31. Slide 31: Entrance Systems' bridge

    Entrance Systems’ bridge MSEK Q4 2023 Organic Currency Acq/Div Q4 2024 Growth 6% -2% 2% 14% 14% Sales 12,189 -293 173 1 771 13 839 Operating income* 2,126 20 46 232 2 424 Operating margin, %* 17.4% -7.0% 26.7% 13.1% 17.5% Dilution/accretion 0.5pts 0.2pts -0.6pts 12 months figures Sales 46,665 49 451

  32. Slide 32: Thank you

    Thank you assaabloy.com

ASSA ABLOY — Q4 2024 Earnings Presentation on 6ix